As most investors know, dividend-paying stocks outperform non-dividend-paying stocks over the long term. This means that every long-term investor should own at least one dividend-paying stock, and depending on your age, investment goals, and risk tolerance, maybe a diversified portfolio full of them. With this in mind, let’s take a look at three stocks with yields of more than 3.5% that you should consider buying today.
1. Whitecap Resources Inc.: 5.4% yield
Whitecap Resources Inc. (TSX:WCP) is one of the largest producers of crude oil and natural gas in Canada. It pays a monthly dividend of $0.0625 per share, or $0.75 per share annually, giving its stock a 5.4% yield at today’s levels. There has been recent speculation that lower commodity prices would force Whitecap to reduce its dividend, but it still generates ample funds from operations each quarter, including $109.93 million in the first quarter, so I think its dividend is safe for the time being.
2. Emera Inc.: 3.8% yield
Emera Inc. (TSX:EMA) is one of North America’s largest electric utilities companies. It pays a quarterly dividend of $0.40 per share, or $1.60 per share annually, which gives its stock a 3.8% yield at current levels. The company has also shown a strong dedication to increasing its dividend, as it has done so nine times in the last seven years, and 2015 marks the first year of its recently announced five-year plan to grow its dividend by 6% or more annually.
3. Toronto-Dominion Bank: 3.6% yield
Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is the second-largest bank in Canada in terms of total assets. It pays a quarterly dividend of $0.51 per share, or $2.04 per share annually, giving its stock a 3.6% yield at today’s levels. TD Bank has also increased its dividend nine times in the last four years, making it one of the top dividend-growth plays in the financial sector today.
Which of these top dividend stocks belong in your portfolio?
Whitecap Resources, Emera, and Toronto-Dominion Bank are three of the market’s top dividend-paying stocks in the market today. Foolish investors should take a closer look and strongly consider establishing positions in one of more of them.
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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Joseph Solitro has no position in any stocks mentioned.